Gold’s repeated failure to take out expanding channel on the day end closing basis followed by a daily closing below $1320.67 (23.6% of May low-June high) if followed by a rejection at $1320.67 and a break below $1310.10 (daily low) would open doors for a drop to $1297.52 (38.2% of May low-June high).

On the higher side, expanding channel hurdle of $1327 needs to be taken out if the prices are to test $1335.33 (June 27 high).